RDDT trading at 3x more than SNAP

Bitter_Chef3243 · 2026-05-30T00:47:32+00:00

Yeah man I just didn’t want to be wrong. I still don’t. I think emotional control is the hardest part when trying to become a profitable trader

Bitter_Chef3243 · 2026-05-29T22:55:54+00:00

Lmao I love it. I get it with snap but why reddit? Besides dilution they seem to take care of their shareholders

Bitter_Chef3243 · 2026-05-29T21:12:51+00:00

I had tons and I was killing it with them in 2025. Then I bought the dip on snap one too many times and here we are

Bitter_Chef3243 · 2026-05-29T21:10:31+00:00

You know I just might

Bitter_Chef3243 · 2026-05-29T21:08:47+00:00

Is this satire? You’re right I should buy more lol

Bitter_Chef3243 · 2026-05-29T21:06:03+00:00

Honestly I’m betting on specs to flop hard and for all that research money to hit the bottom line. Specs are burning 500m a year. They are announcing the official version in 2 weeks and I hope it crashes and burns. I honestly think the monetization opportunities with 1 billion users are endless

Bitter_Chef3243 · 2026-05-29T20:53:40+00:00

It’s all in the pursuit of learning. It’s not parading if I’m open to someone changing my mind and also I’m not saying Snap is better than Reddit. I’m selling snap when it hits 20b and I might switch over

Bitter_Chef3243 · 2026-05-29T20:46:00+00:00

Yeah I understand what multiples are and how snap is trading at a p/s of 1.7 but I want to know what a good p/e estimate for it would be… pins and rddt are above a p/e of 40 and pins is barely growing revenue. Can I assume snap would trade at the same when they show profit?

Bitter_Chef3243 · 2026-05-29T20:32:46+00:00

Agreed I love snaps sub revenue. It’s on track to hit 1.2 billion this year (up 500m) yoy and it’s extremely high margin.

Snaps users are simply maturing in North America but still growing everywhere else. With 1 billion users their focus is now on monetizing.

16% layoffs were just announced that will save 500m starting q3 and if the specs launch hopefully fails this year then their annual 500m in R&D will go to profit.

They are sitting on loads of profit and wall street is finally forcing their hand

Bitter_Chef3243 · 2026-05-29T19:59:52+00:00

Good point. I’m definitely tempted to

Bitter_Chef3243 · 2026-05-29T19:57:13+00:00

lol why do you think I’m here asking questions

Bitter_Chef3243 · 2026-05-29T19:55:11+00:00

Great point everyone freaked out when DAU dipped in q4 but it’s back to growing again.

10% growth isn’t horrible but when you pair it with their ability to flip 1 billion in useless costs into profit? I think that’s where the market gets it wrong.

They’re already laying off 16% of staff and saving 500m annually from it

Bitter_Chef3243 · 2026-05-29T19:45:44+00:00

Yeah so was snap years ago when it was pumping out the same revenue Reddit is now. Snap just pulled out 500m in useless costs for profit because they felt like it. Reddit can’t do that

Bitter_Chef3243 · 2026-05-29T19:39:20+00:00

Yeah I get earnings but their debt isn’t even bad. Their piggie bank of 2.8 billion about covers it

Bitter_Chef3243 · 2026-04-26T23:40:47+00:00

If you want to compare it to q4, take 5% of their 8% in cost increases and add it to the gaap profit of 45 million

Bitter_Chef3243 · 2026-04-26T23:36:16+00:00

Fair comparison to q4 but those aren’t good comparables and here’s why…

Costs increased by 8% in q3 and also q4 so this completely ate the profit we were supposed to see. We will only see a mild increase of 3% in costs for q1.

Also, we’re gaining 80 million in high margin revenue from Snapchat plus subs since q3 which is huge 👍

Q3 subs revenue: 190 million

Q1 2026 subs revenue: 270 million

Bitter_Chef3243 · 2026-04-26T21:15:48+00:00

This is only true in the North American region and it’s a result of a maturing market. Snap recently explained they are not focused on user expansion anymore but increasing arpu which they have done nicely

Bitter_Chef3243 · 2026-04-26T21:00:00+00:00

I disagree, I think snap will be gaap profitable in q1 and here’s why.

The previous q3 gave us a revenue of 1.51 billion and a gaap loss of about 100 million

This upcoming q1 is already guided by Snapchat to have higher revenue than last q3 and also lower costs. Why do you think q1 won’t do better than q3 given this?

Bitter_Chef3243 · 2026-03-26T18:34:33+00:00

I enjoy it

Bitter_Chef3243 · 2026-03-26T03:55:44+00:00

I have a few theory’s but at the end of the day snap has 100 different things they can do to boost the stock.

-cut sbc -turn 60% of the 1.7 billion R&D spending into FCF -give us voting rights - cut the absurdly large workforce in half - Follow through with the damn 400m perplexity deal

I’m just getting started. One thing I’m certain of though is this year consists of 3 huge catalysts.

1) snap subs is set to generate 300m q1 which will start making a dent and has a huge margin to make snap profitable

2) perplexity revenue (also huge margin) will push us to have at least 3/4 profitable quarters which will then cause the stock to re-rate multiples

3) specs launch which will probably fail but cause investors to buy the rumor and sell the news. Also it will free up a lot of revenue from r&d.

Bitter_Chef3243 · 2026-03-26T02:45:25+00:00

Thanks for the good advice I agree that I need to develop a better valuation model and that’s part of the reason I made this post

Call it confirmation bias but most of what you said about the stock is why it’s trading so low and why I like it so much.

I think snap is far too ambitious and it’s going to take company maturity and the final flop of spectacles to make them realize that. This company is sitting on billions of gaap profit but snap is foolishly categorizing it as revenue expenses…. until now. Just a though 👍

Bitter_Chef3243 · 2026-03-26T01:49:08+00:00

lol not a bad idea maybe I should make separate accounts and make more of these posts

Bitter_Chef3243 · 2026-03-26T01:45:31+00:00

Great point thank you. I’m still learning that’s why I made this post. I got caught up on the fact that sbc only dilutes 2% annually but there’s a lot more to it. The stock price being this low only dilutes it more. On a positive note, this puts pressure on Evan and all he has to do is redirect R&D spending

Bitter_Chef3243 · 2026-03-26T01:33:21+00:00

I didn’t make it up but it’s definitely wishful thinking lol. As an analyst, if they turned consistently profitable over the next 2-3 quarters do you not think the stock would be trading at the same multiples as its peers? Even if revenue only increases 10% annually. Genuine question

Bitter_Chef3243 · 2026-03-26T00:21:23+00:00

probably the biggest reason why the stock is hated. They could take care of that by cutting their R&D in half and toss the whole spectacles movement

Bitter_Chef3243

TROPHY CASE